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Zarrin [17]
3 years ago
11

A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu

ilding: Purchase price of the land $ 620,000 Sale of salvaged parts already on land $ 25,000 Demolition of the old building $ 23,000 Ground-breaking ceremony (food and supplies) $ 1,100 Land preparation and leveling $ 8,300 What amount should be recorded for the purchase of the land
Business
1 answer:
guajiro [1.7K]3 years ago
3 0

Answer:

$651,300

Explanation:

Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.

<u>Calculation of the cost of  purchase of the land:</u>

Purchase price                            $ 620,000

Demolition of the old building      $ 23,000

Land preparation and leveling       $ 8,300

Cost of  purchase of the land       $651,300

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Dividends at FSL are expected grow at a rate of negative 5.4% per year (the dividends are getting smaller). The stock just paid
Crank

Answer:

$21.37

Explanation:

g = -5.4%

D0 = $3.93

D1 = D0 (1+g)

D1 = 3.93*(1-0.054)

D1 = 3.93*0.946

D1 = 3.71778

Investors require a return (ke) of 12%

P0 = D1/(ke - g)

P0 = 3.71778 / (12% - (-5.4%)

P0 = 3.71778 / (12% + 5.4%)

P0 = 3.71778 / 17.4%

P0 = 3.71778 / 0.174

P0 = 21.3665517

P0 = $21.37

So, the expected price of the stock next year is $21.37.

5 0
3 years ago
A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 f
xxMikexx [17]

Answer:

$3.40 per kilogram

Explanation:

Calculation for the standard price per kilogram for the raw material

Using this formula

Standard price per kilogram=(Raw Material total cost +Materials price variance)/Raw material kilograms

Let plug in the formula

Standard price per kilogram=($21,920+$1,370)/6,850

Standard price per kilogram=$23,290/6,850

Standard price per kilogram=$3.40 per kilogram

Therefore the standard price per kilogram for the raw material will be $3.40

3 0
3 years ago
How can you change your city
Mice21 [21]

Answer:

cleaning up trash off the side of the road...

8 0
2 years ago
A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95
Lapatulllka [165]

If a  portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. The portfolio beta is 1.119.

<h3>Portfolio beta</h3>

Using this formula

Portfolio beta=(Stock A portfolio×beta)+[(1-Stock A porfolio)× Stock B beta]

Let plug in the formula

βp = (.65 × 1.21) + [(1 - .65) × .95]

βp = (.7865) + [.35 × .95]

βp= .7865+ .3325

βp = 1.119

Therefore the portfolio beta is 1.119.

Learn more about  portfolio beta here:brainly.com/question/14986133

8 0
1 year ago
Which of these statements about liquidity traps is false? Firms are unlikely to undertake investment during liquidity traps beca
nika2105 [10]

Answer:

The correct answer is: firms are unlikely to undertake investment.

Explanation:

The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.

The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.

The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.

3 0
3 years ago
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